XRP Clears Resistance Liquidity, But This Support Could Decide Its Next Move

$XRP has cleared liquidity around its most immediate resistance,now dropping to a support level that may determine its next direction.

$XRP climbed to $1.69 last week but met strong resistance around that level and later pulled backtoward $1.40. The token now trades at $1.41, although it still holds a 40% gain over the past week.

With the <a href="https://xpertsstudio.com/xrp-leads-crypto-pullback-as-leverage-unwind-tests-rally/” title=”XRP Leads Crypto Pullback as Leverage Unwind Tests Rally”>pullback underway, CryptoQuant analyst Pelinay has warned that selling pressure couldremain in place. She believes $XRP may first return to a support area before the market decides its next move.

Pelinaynotedthat $XRP wasobservinga shift fromtheresistanceareatoward support.After looking at $XRP’s supply side together with its derivatives market, she found signs that short-term pressure remains high.

Long Liquidations Show Rising Selling Pressure

Notably, long liquidations reached about $4.66 million, marking a 31.82% increase in one day. Short liquidations, meanwhile, stood at around $1.13 millionafter rising61.61%.

Essentially,long liquidationswere nearly four timeshigher thanshort liquidations. This shows that $XRP’s recent decline forced many traders with leveraged long positions to close out their trades.

As a result, the sell-off did not come only from spot-market selling. Liquidations of leveraged long positions also added to the downward pressure.

Still, the removal of these leveraged positions could help create better conditions for a rebound later, as $XRP has cleared overhead liquidity. For now, however, the much higher level of long liquidations confirms the current bearish move.

$XRP MFI Still Leaves Room for More Downside

Pelinay also highlighted $XRP’s declining Money Flow Index (MFI), which fell to 35.89.Notably, MFI had been around 60 before falling tothecurrentfigure,showingthat the buying pressure behind $XRP’s earlier rise has weakened considerably.

Meanwhile, $XRP’s MFI has not fallen below 20, so the token has not yet entered the technically oversold area. This means the indicator still leaves room for further weakness. It also suggests that $XRP has yet to produce a strong signal that abottom is in place.

The price action also supports this. Specifically, $XRP climbed to $1.52 before falling back to $1.43. At the same time, several indicators are pointing in the same direction. Overall, $XRP’s price is falling, MFI is declining, Binance reserves are rising, and long liquidations are increasing. These readings show a negative short-term setup.

$XRP Still Holds a Longer-Term Bullish Structure

Meanwhile, short-term technical indicators remain slightly more balanced. $XRP currently trades at $1.41 after reaching an intraday high of $1.48 on August 24.

On that same date, the daily RSI14 reached 80.48, putting $XRP deep into overbought territory. This helps explain why the price has started to cool after its recent advance.

Despite the weaker momentum,$XRP’s broader structure remains upward. The 200-day EMA sits at $1.34, below the current spot price. As long as $XRP remains above this level, the longer-term uptrend structure remains intact.

The first major support now sits around $1.36.Short-term EMAs alsocome togetheraround $1.36, $1.32, and $1.20,which createsa bullish EMA structure.Holding the $1.36 area could help $XRP avoid a deeper decline.

$XRP Bulls Need to Defend $1.36

A break below $1.36 would put the $1.28 region in focus. That level served as the daily S1 pivot during last week’s breakout and could become the next important support if selling pressure continues.

On the other side,$XRPfaces immediate resistance at $1.45. The level previously acted as support before the pullback and has now become a resistance area.A clean move above $1.51 wouldoffera stronger bullish signal, as that levelmatchesR1onthe daily pivot framework.

For now, the $1.36 level remains important for $XRP. Holding it would give the token a chance to stabilize after clearing liquidity around resistance. However, losing that support could send $XRP toward $1.28 and extend the current pullback.

Source: cryptonews.net